Dell'Oro discerns 'staggering' 2Q data center switch sales

Sept. 7, 2022
The analyst for the telecommunications, networks and data center industries reports that global sales of data center switches grew in excess of 20 percent in 2Q 2022, driven in no small part by cloud service providers.

According to recent market analysis from Dell'Oro Group, global data center switch sales grew in excess of 20 percent in 2Q 2022, reaching an all-time high for the quarter, as well as for the first half of the year. The new report's numbers are evidence of a continuing trend for this year, as well as from last year.

Dell'Oro reports that the market growth was broad-based across a number of vendors. "However, only Arista and white box vendors were able to gain revenue share during the quarter," added a press release from the analyst.

Dell'Oro's 2Q 2022 Ethernet Switch – Data Center Report found that double-digit growth was recorded across all major customer segments, including cloud service providers (SPs) and telco SPs, as well as large enterprises. The analyst found that each of these segments reached a record revenue level for the quarter and the first half of the year.

The Dell'Oro Group Ethernet Switch – Data Center Quarterly Report offers a detailed view of the market, including Ethernet switches for server access, server aggregation, and data center core. Software is addressed separately. The report contains in-depth market and vendor-level information on manufacturers' revenue; ports shipped; average selling prices in categories for both Modular and Fixed Managed and Unmanaged Ethernet Switches (1,10, 25, 40, 50, 100, 200, 400, ≥800 Gbps); revenue split by market segments, as well as regional breakouts.

The analyst's statement added that "to our surprise, the robust growth was broad-based across all regions, including China which has experienced several weeks of lockdown in multiple cities during the quarter."

200G, 400G cloud connectivity on the rise

The new report notes that 200 Gbps and 400 Gbps approached 2 million ports and comprised more than 10 percent of shipments and nearly 20 percent of revenues during the quarter.

"As anticipated, this growth was driven by an accelerated adoption from large cloud SPs as well as some deferred revenues that got recognized during the quarter," added the analyst's statement

QUOTE "We have been forecasting a double-digit growth in the market; driven by ongoing strong customer demand, balanced by supply challenges. However, vendors' ability to work through these supply challenges and deliver the level of shipment witnessed during the quarter beat our expectations, although it came at higher logistics and component costs. We expect supply constraints to persist through the remainder of the year and to continue to shape the market as well as vendors' performance," -- Sameh Boujelbene, senior research director at Dell'Oro Group

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